Russia’s gas monopoly Gazprom and German Å.On AG sealed an understanding memorandum for joint construction and operation of a gas turbine power plant with the capacity of 1,200 MW.
Photo: Sergey Mikheev
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Gazprom to Share Energy with Europe
Gazprom and German E.On AG agreed Friday to construct a 1,200-MW power plant in Germany. It will be the monopoly’s first energy asset in Europe but for the Kaunas heat power plant in Lithuania. The analysts see joint construction as Gazprom’s first step towards diversification of its overseas business.
Russia’s gas monopoly Gazprom and German Å.On AG sealed Friday an understanding memorandum for joint construction and operation of a gas turbine power plant with the capacity of 1,200 MW in German Lubmin. North Stream gas pipeline will run in the same region, delivering gas to the plant. The companies will make a final investment decision under the project in 2009 and the launch of the plant is slated for 2011.
Gazprom and E.On will create pari passu a venture that will manage the project. According to KIT Finance analyst Dmitry Tsaregorodtsev, the capacity of 1,200 MW is material enough and the project budget could be about $1.8 billion. The plant’s efficiency could reach 20 percent depending on the cost of the gas, the analyst said, adding that the price for electric facilities is going up and Gazprom will be able to swap them for new energy and gas assets in Europe.
Gazprom has been long striving for a full-cycle of gas usage, starting from production to the energy supplies generated by a power plant. For E.On, the project investments will be a part of investment program, which budget stands at ˆ60 billion and which is targeted at new markets, the companies clarified in a joint statement.
People in Gazprom and E.On say the plant’s construction is out of their project for swapping the assets to ensure involvement of German partners in development of Yuzhno-Russkoe field, which resources are estimated at above 800 billion cu meters of gas.
www.kommersant.com
All the Article in Russian as of Mar. 03, 2008
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